UPDATE: A major regulatory overhaul for Optus is urgently needed following a catastrophic triple-0 outage that left hundreds of Australians unable to call for emergency assistance. On September 18, 2023, the number of affected customers surged from 10 to 600 within 24 hours, prompting serious concerns about the telco’s governance and crisis management capabilities.
The outages began with minimal reports but escalated quickly, raising alarms for government officials and emergency services. Communications Minister Anika Wells confirmed that the network failure was linked to three deaths, intensifying calls for accountability within the company. During a Senate inquiry held earlier this week, Greens senator Sarah Hanson-Young demanded, “Who’s going to get the sack?” expressing frustration over the lack of immediate corporate responsibility.
Experts, including Melbourne University Law School professor Jeannie Paterson, argue that targeting Optus’ CEO Stephen Rue will not resolve deeper systemic issues. “We need to ask what the governance structures throughout the organization look like,” Paterson stated, emphasizing that the focus should be on comprehensive compliance reforms rather than just executive accountability.
Optus has been under intense scrutiny from multiple investigations, including one by the Australian Communications and Media Authority (ACMA). The telco insists it did not breach regulatory obligations, although experts argue this reflects a flawed “rule-based approach mentality.” Paterson highlighted that the company’s failure to communicate with the government during the crisis demonstrated a critical breakdown in governance processes.
“Given the significance of the situation, with 600 customers unable to get through to triple-0, senior management should have initiated communication with the government,” she stated. This incident underscores repeated failures in Optus’ risk management, with calls for increased transparency and scrutiny from regulators.
In response to the outage, the Australian government has fast-tracked new legislation allowing it to demand real-time updates from telcos regarding triple-0 performance. As of November 1, 2023, companies must report outages promptly to ACMA to ensure quicker responses to emergencies.
The inquiry has also criticized ACMA for its regulatory leniency, suggesting that it needs to enforce stricter compliance measures. However, Paterson cautioned that while prescriptive rules might stifle innovation, clearer performance outcomes for telcos are essential, particularly regarding critical emergency services.
As discussions continue about the potential repercussions for Optus, including the possibility of losing its operating license, experts agree that the focus should shift to ensuring the company meets the performance standards expected in Australia. “Optus is not too big to fail,” Paterson warned, “but we need to see them improve their internal governance processes, which appear quite frankly dysfunctional.”
This developing story highlights the urgent need for reform in Australia’s telecommunications sector to prevent future crises and ensure public safety. Stay tuned for further updates as this situation unfolds.
